Acquisition Expected to Drive Additional Revenue and Operating
Efficiencies
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (the "Company" or "Limoneira") (NASDAQ: LMNR), a
leading agribusiness with prime agricultural land and operations, real
estate and water rights in California and Arizona, announced today that
it has closed on the purchase of the packing house property and
equipment of Marlin Ranching Company in Yuma, Arizona. The purchase
price was $1.4 million in cash and stock plus potential earn-out
consideration of up to $400,000 in cash.
Limoneira will use the packing facilities to wash and pack lemons from
the Company's orchards in Arizona as well as citrus from other growers
in the region. The Company estimates that it will process approximately
500,000 to 600,000 cartons of fresh lemons annually from this facility,
generating approximately $400,000 to $500,000 per year in operating
income resulting from a combination of cost savings from not shipping
fruit to the Company's Santa Paula packing facilities and incremental
fruit packing operations.
Alex Teague, Senior Vice President, stated, "We are excited about the
acquisition of the Marlin packing assets, which is strategically located
near our current farming operations in Yuma. This acquisition will
immediately increase our volume and give us increased flexibility in the
export markets. Importantly, this also gives us the ability to ship
Arizona lemons to China. We expect to benefit from improved operating
efficiencies from the new packing house, particularly during the first
quarter of our fiscal year."
Harold Edwards, President and Chief Executive Officer, added, "The
acquisition of Marlin packing operations is in-line with our long-term
goal to expand our agribusiness. Along with the expansion of our primary
packing facilities in Santa Paula, which is on track to be completed
next fiscal year, this acquisition will significantly increase our
packing capacity. In addition, we continue to evaluate opportunities to
expand our total agribusiness acreage through strategic acquisitions."
About Limoneira Company
Limoneira Company, a 120-year-old international agribusiness
headquartered in Santa Paula, California, has grown to become one of the
premier integrated agribusinesses in the world. Limoneira (pronounced lē
mon΄âra) is a dedicated sustainability company with approximately 10,000
acres of rich agricultural lands, real estate properties and water
rights in California and Arizona. The Company is a leading producer of
lemons, avocados, oranges, specialty citrus and other crops that are
enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on Limoneira's current expectations
about future events and can be identified by terms such as "expect,"
"may," "anticipate," "intend," "should be," "will be," "is likely to,"
"strive to," and similar expressions referring to future periods.
Limoneira believes the expectations reflected in the forward-looking
statements are reasonable but cannot guarantee future results, level of
activity, performance or achievements. Actual results may differ
materially from those expressed or implied in the forward-looking
statements. Therefore, Limoneira cautions you against relying on
any of these forward-looking statements. Factors which may cause future
outcomes to differ materially from those foreseen in forward-looking
statements include, but are not limited to: changes in laws,
regulations, rules, quotas, tariffs and import laws; weather conditions
that affect production, transportation, storage, import and export of
fresh product; increased pressure from crop disease, insects and other
pests; disruption of water supplies or changes in water allocations;
pricing and supply of raw materials and products; market responses to
industry volume pressures; pricing and supply of energy; changes in
interest and currency exchange rates; availability of financing for land
development activities; political changes and economic crises;
international conflict; acts of terrorism; labor disruptions, strikes or
work stoppages; loss of important intellectual property rights;
inability to pay debt obligations; inability to engage in certain
transactions due to restrictive covenants in debt instruments;
government restrictions on land use; and market and pricing risks due to
concentrated ownership of stock. Other risks and uncertainties
include those that are described in Limoneira's SEC filings, which are
available on the SEC's website at http://www.sec.gov.
Limoneira undertakes no obligation to subsequently update or revise
the forward-looking statements made in this press release, except as
required by law.
ICR
John Mills
Partner
310.954.1105
Source: Limoneira Company
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